Have you been wondering how to get money for a new home? As the saying goes there are so many ways of killing a cat, still there are so many ways to raise funds legally and own a home of your.
5 Reasons To Invest In Rental Property At Virginia Beach
The rent versus buy debate has long followed the real estate industry. Some are staunch supporters of the decision to rent, saying it allows a freedom few homeowners ever experience. Others are all for the decision to buy, saying it grants a stability and sense of pride renters will never achieve. The truth is both sides have valid, fact backed opinions. But it is also clear the benefits of investing in rental property are huge.
Rental Property Equals Additional Income
Let’s be honest; investing in rental property is not the smartest move for everyone. Your average homeowner will want nothing to do with the involved commitment, and that’s okay. While some are content to buy and manage their own home, others are interested in making a smart investment capable of paying off over time.
Unlike renting, when a home is purchased your monthly payment allows you to build equity. When you buy a second home with the intent to produce rental income, the same applies. However, the monthly payment passed on to the tenant includes a profit margin. Granted, the margin can shrink based on needed repairs and maintenance, but the shrink is usually temporary.
Smart investors see the attraction to Virginia Beach for tourists (both national and international) and snow birds. Rental property can be rented out to traditional tenants or seasonal travelers. Both routes produce additional income, sometimes more lucrative than originally projected.
Location, Location, Location
It’s the catchphrase of real estate, and there’s an untold amount of truth in it. Where you buy a home to live in is important. Where you buy a property to rent out is even more important. Virginia Beach offers one of the best markets in the United States for rental property investment, for several reasons:
Tourism: Its beachside location makes the city of Virginia Beach a hot spot for seasonal visitors. Due to its east coast whereabouts, the season for tourism lasts far longer than beaches situated further north. And it’s not so hot in the summer as to discourage visitors who don’t care for stifling heat.
International Attractions: Many of the festivals held throughout the year in Virginia Beach are of international interest. From arts and music to historic landmarks and recreation, the city is a major attraction for visitors from around the globe.
Destination Spot: Virginia Beach is also a major destination spot in the United States. It’s one of those places people plan weddings, honeymoons, vacations, and seasonal stayovers. From blushing brides to escaping snow birds, Virginia Beach is a prime location for a melting pot of diverse people, some planning a six-month stay and others seeking a two-week excursion.
The Clear (Tax) Advantage
When you buy a home with the intent to rent it out, you become a homeowner. It doesn’t matter that the house is not your primary residence. You still own it, which means you are eligible for tax breaks.
Portions of your mortgage payment on the property will go toward real estate taxes and interest, which can grant a yearly tax deduction, leading to a possible end-of-year bonus. You can use this bonus to your tax return to pay down the mortgage quicker. Once the home loan has been fulfilled, the monthly rent charged to a tenant gains a much larger profit margin.
The Opportunity to Save Money
A smart investor will shop with the aid of a professional real estate agent. Together, they will find the property with the most “bang for the buck,” which means:
The property will require little to no renovations or repairs.
The price of the property will be reasonable.
The buyer will be able to produce a sizeable down payment to lower the monthly mortgage rate leading to a faster payoff.
The property will be in a prime location and highly marketable.
If these four staples of rental property investment are met, the buyer will create the opportunity to save money while renting out the home. The ideal investment will allow the purchaser to retain a savings from their income even before the property is rented out. As a result, the income resulting from the rental property can be saved to either pay off the open loan faster or invest in a second rental property.
Virginia Beach Rentals are Superbly Marketable
Virginia Beach is one of the most marketable areas to purchase rental property. Thanks to the influx of people and its destination spot status, the crowd of people wanting to rent is continually growing. You will have the opportunity to market the house in numerous ways, from a traditional rental to an elaborate spot for honeymooners, wedding parties, international visitors, and snow birds.
Rental properties in Virginia Beach are perhaps one of the smartest investments on the east coast. If you’re interested in pursuing the purchase of a property for rental income, contact us today for expert advice and assistance.
Whether it is your first home or the home you plan to retire in, I will be there to ease the process every step of the way! I find great pleasure in helping people achieve their goals in real estate a....